02/2013
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5 Geo r g i a Agriculture Finance Bulletin Government is still compensating victims of natural calamities that took place in Kakheti, in July-August 2012 State Insurance Challenges Commercial Sector Asian Development Bank Allocated 50 Million USD to “TBC Bank” In Recent Months, 62 Companies Founded by Russian Citizens Registered in Georgia
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Georgian Agriculture Finance Bulletin Edition #5, February 16—28, 2013
Table of Contents State Initiatives ........................................................................................................... 2 1)
Government is still compensating victims of natural calamities that took place in Kakheti, in JulyAugust 2012 ..................................................................................................................................... 2 2) Spring agricultural renovation programme has started in Georgia ................................................ 2 3) Distribution of Agricultural Cards to be Completed by March 5th ................................................. 2 4) China Interested in Increasing Georgian Wine Export .................................................................... 2 5) Agriculture Ministry Ready to Receive Russian Experts .................................................................. 2 6) State Insurance Challenges Commercial Sector .............................................................................. 3 7) Agricultural vouchers are being distributed in western Georgia .................................................... 3 8) Distribution of Agricultural Cards Begins in Western Georgia ........................................................ 3 9) Irrigation canals are being cleaned in Marneuli .............................................................................. 3 10) Georgian Lands Divesture Suspended Partially ............................................................................... 4
Foreign Aid ................................................................................................................. 4 11) Asian Development Bank Allocated 50 Million USD to “TBC Bank” ................................................ 4 12) EPI Georgia—Access to Finance ...................................................................................................... 4
Private Sector.............................................................................................................. 5 13) 14) 15) 16)
PM Ivanishvili Meets Tata Group Delegation .................................................................................. 5 Russian Experts Arrive in Tbilisi | Prime news................................................................................. 5 Georgia farms face Indian “invasion” .............................................................................................. 5 In Recent Months, 62 Companies Founded by Russian Citizens Registered in Georgia ................. 5
Note: The Georgian Agriculture Finance Bulletin presents a monthly roundup of headlines and news stories related to investments and financing flows to Georgia’s agricultural sector. This bulletin is prepared by Business & Finance Consulting—a Swiss-based development finance consulting company with a long history of working in Georgia. Currently, BFC is implementing the Agricultural Lending Programme for KfW. Read more »
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BFC. Georgian Agriculture Finance Bulletin. Edition #5, February 16—28, 2013
State Initiatives 1)
Government is still compensating victims of natural calamities that took place in Kakheti, in July-August 2012
February 12th, 2013, http://primetimenews.ge/?page=4&news_id=17290
According to the announcement of Ministry of Regional Development and Infrastracture, government is compansating victims. On this stage 19 670 out of 28 500 families have been compansated. Ammount of compansations adds up to 53 213 657 GEL. Read More »
2)
Spring agricultural renovation programme has started in Georgia
February 16th, 2013, http://bizzone.info/agriculture/2013/1361054642.php
According to the Minister of Agriculture David Kirvalidze, work on agricultural renovation has begun in vilages of Kvemo Kartli. Kirvalidze also got acquainted over arable land tillage process, which is part of the programme, in Akhali Dioknisi, Marneuli region. Read More »
3)
Distribution of Agricultural Cards to be Completed by March 5th
February 21st, 2013, http://commersant.ge/eng/index.php?id=4610
Distribution of agricultural cards will be completed by March 5th. The head of Rural Development Department of the Ministry of Agriculture told radio "Commersant" that in total 688 thousand beneficiaries will receive preferential packages, however, this number may increase because the ministry is waiting for additional lists of unregistered land owners. Read More »
4)
China Interested in Increasing Georgian Wine Export
February 21st, 2013, http://www.prime-news.ge/?p=98886&lang=en
Georgia’s Minister of Agriculture Davit Kirvalidze met with the ambassador of China in Georgia. As the Ministry of Agriculture informs, future cooperation between the countries was discussed. “The Chinese party is interested in increasing Georgian wine export. 1 million Bottles of Georgian wine were exported to the Chinese market last year. China is also interested in other Georgian products, especially fruit and citrus”, the ministry informs. Read More »
5)
Agriculture Ministry Ready to Receive Russian Experts
February 21st, 2013, http://www.prime-news.ge/?p=98912&lang=en
Georgia’s Agriculture Ministry is ready to receive the experts from the Russian “Rospotrebnadzor”. Georgia’s Agriculture Minister Davit Kirvalidze stated about it at a briefing on Thursday.
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BFC. Georgian Agriculture Finance Bulletin. Edition #5, February 16—28, 2013
The Minister said after the Georgian and Russian sides launched negotiations regarding return of Georgian products to the Russian market certain groups started manipulating with this issue. The Agriculture Minister called on them to refrain from spreading false information. Read More »
6)
State Insurance Challenges Commercial Sector
February 21st, 2013, http://www.georgianews.ge/business/22331-state-insurance-challenges-commercial-sector.html
The proposed State Insurance Fund, taking all the state-based health-insurance programs off the hands of insurance companies, challenges the commercial sector to stay afloat in the market. Sector pundits do not rule out that the insurance market may get more consolidated.
Sector pundits recommend development of other insurance products specifically agriculture insurance that is so insignificant at the moment that companies cannot name its share in their product portfolio. Agriculture insurance seems promising after government made agriculture as a key priority starting this year and plans to invest hundreds of millions in this sector that cannot be done without proper insurance. Consultations have already started between the state and insurance sector to this end. Read More »
7)
Agricultural vouchers are being distributed in western Georgia
February 25th, 2013, http://bizzone.info/agriculture/2013/1361826517.php
Today, distribution of agricultural vouchers began in western part of Georgia. Represantatives of the Ministry of Agriculture and the Agency of Agricultural Project Managment delivered vouchers to municipalities of Sachkhere, Chiatura, Kharagauli and Zestafoni. They also made a presentation about the terms of use. Read More »
8)
Distribution of Agricultural Cards Begins in Western Georgia
February 25th, 2013, http://moa.gov.ge/?p=2409&lang=en
Representatives of the Ministry of Agriculture and Agricultural Projects Management Agency brought cards to Sachkhere, Chiatura, Kharagauli and Zestafoni Municipalities today. They conducted special presentation for local officials introducing rules and procedures of card distribution and usage. “We plan to finish distribution of cards for Thursday in Imereti Region and then to continue in Samegrelo-Zemo Svaneti. According to agrarian calendar next in queue are Adjara, Samtskhe-Javakheti, Guria and RachaLechkhumi Regions. For 10th of March first circle of card distribution will be over in whole country”, stated Kontantine Khutsaidze, Head of Agriculture and Food Department of the Ministry. Read More »
9)
Irrigation canals are being cleaned in Marneuli
February 26th, 2013, http://bizzone.info/agriculture/2013/1361914711.php
According to reports of the Ministry of Agriculture, the Spring Project has begun, workers are already cleanning the irrigation canals. First deputy of the Minister of Agriculture David Shervashidze and the director of United Irrigation Systems of Georgia Vazha Kortava visited the site with farmers. Read More »
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BFC. Georgian Agriculture Finance Bulletin. Edition #5, February 16—28, 2013
10) Georgian Lands Divesture Suspended Partially February 28th, 2013, http://www.georgianews.ge/business/22431-georgian-lands-divesture-suspended-partially.html
Divesture of Georgian lands in the state ownership is put on halt until the land code is elaborated and the land privatization details are worked out precisely. But private lands remain beyond the state control that makes sector pundits worry. Crown Immigration Consultancy Services Pvt.Ltd, an Indian-based company involved in the promotion of privately owned Georgian lands for sale to foreigners [from India and Egypt mainly] may go ahead with its activity until the Land Code elaborating the land strategy and privatization details will be worked out in Georgia. Read More »
Foreign Aid 11) Asian Development Bank Allocated 50 Million USD to “TBC Bank” February 26th, 2013, http://commersant.ge/eng/index.php?id=4667
The Asian Development Bank [ADB] has allocated credit resources of 50 million USD to “TBC Bank”. The agreement was signed between the parties at the bank’s headquarters today. Document was signed by Director General of “TBC Bank” Vakhtang Butskhrikidze and financial sector specialist of the Asian Development Bank Rainer Hartel. A five-year credit resource will allow “TBC Bank” to fund small and medium businesses in the regions. In the frames of the agreement, microloans may be financed through bank “Constanta” which is the bank’s subsidiary. Read More »
12) EPI Georgia—Access to Finance February 28th, 2013, http://www.epigeorgia.com/index.php/en/resources/news
Raising Awareness of Access to Finance On February 18—25, EPI’s access to finance manager participated in hazelnut and mandarin trainings in Adjara and Samegrelo regions and delivered trainings to 497 farmers on financial products available for agricultural production and inputs. The training demonstrated details of financial instruments such as 0% agricultural commodity credit, low cost (3%, 7—8%) agricultural loans, leasing and crop insurance. Development of New Financial Products EPI has been working on the development of a financial scheme allowing mandarin and hazelnut growers to receive agricultural inputs and services at a low cost and consignment terms. After sharing the model with the Ministry of Agriculture of Georgia, the Ministry decided to use the model and even expand it in order to offer the same scheme of 0% agricultural installment to farmers countrywide. The development of this scheme will cause a reduction of the current interest rate of 7%, offered by Credo within the scope of its collaborated assistance with EPI, to 0%. Members of hazelnut and mandarin grower farm groups will now be able to access agricultural inputs and services on consignment terms with 0% interest rate. Read More »
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BFC. Georgian Agriculture Finance Bulletin. Edition #5, February 16—28, 2013
Private Sector 13) PM Ivanishvili Meets Tata Group Delegation February 20th, 2013, http://www.prime-news.ge/?p=98661&lang=en
Prime Minister Bidzina Ivanishvili has met with a delegation from the Indian transnational company Tata Group. The first meeting was held within the framework of the World Economic Forum in Davos, where the Tata Group expressed a desire to make investments in Georgia, the Prime Minister’s press service reports. Perspectives for future cooperation between the company and Georgia were discussed at the meeting. The Tata Group is interested in implementation of investment projects in areas of energy, tourism, agriculture, refinery and informational technologies. Read More »
14) Russian Experts Arrive in Tbilisi | Prime news February 25th, 2013, http://www.prime-news.ge/?p=99335&lang=en
Rospotrebnadzor (Russian federal supervisory agency for consumer goods quality) specialists have arrived in Tbilisi. Head of the national wine agency Levan Davitashvili met them at Tbilisi international airport. Levan Davitashvili stated that this is a working group, consisting of 6 members. They will be divided into 3 groups and start inspecting factories from tomorrow. He mentioned that as a result of the agreement, Russian specialists will make statements after returning to Moscow. Read More »
15) Georgia farms face Indian “invasion” February 25th, 2013, http://finchannel.com/Main_News/Geo/123944_AlJazeera%3A_Georgia_farms_face_Indian_%27invasion%27/
The FINANCIAL—Larisa Maisuradze was astonished to see the sudden proliferation of foreigners driving farm machinery near her sleepy village, about 25 kilometres south of the Georgian capital, Tbilisi . Her home is sandwiched between the lone street that runs through the small village of Samgori on one side, and a vast tract of underutilised farmland on the other. Read More »
16) In Recent Months, 62 Companies Founded by Russian Citizens Registered in Georgia February 26th, 2013, http://commersant.ge/eng/index.php?id=4659
Russian entrepreneurs consider Georgia a promising country for doing business. At the same time, in their opinion, this is not only due to the political changes that have recently occurred in Georgia. The Financial writes. The edition reports that only in October -December period in total 62 companies which were founded by Russian citizens have been registered in the country. Read More » Page 5
Prepared by Business & Finance Consulting (BFC) www.bfconsulting.com In this bulletin, BFC provides extracts from articles that have been published by others and as a result cannot be held responsible for such content. The articles do not necessarily reflect the opinions of BFC, its staff, its associates or its partners. Copyright of articles is retained by their authors.